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Digital Lenders: Risk to loose Licenses for exposing Borrower data and embarrassing them

All digital lenders risk losing their licenses for exposing the borrower’s data, embarrassing and shaming them to the public if a new clause of the Central Bank Amendment Bill 2021 is passed by Parliament.

The regulator will be allowed to revoke licenses of the digital lenders who shame borrowers and reveal his/her confidential information and data.

“The Bank would suspend and revoke a license by written notice to the holder of the license if the licensee is in breach of subsection 2A or the condition of the data protection Act/ the consumer Protection Act” Bill states

Central Bank of Kenya had barred unregulated digital lenders from listing default borrowers on the CRBs in May 2020, following the numerous complaints from the borrowers. 

On the other hand,  National Assembly Committee on Finance and National Planning chaired by Gladys Wanga allowed the mobile lenders to list defaulters with CRBs in the line with the 2021 Central Bank of Kenya (CBK) Act.

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